ECB survey of 19,000 adults across 11 eurozone countries showed expectations dropping from 4.0% in April, reinforcing signs of softer price pressures that could ease pressure on ECB policy, bond yields and the euro.
Eurozone households lowered their inflation expectations for the next 12 months to 3.5% in May from 4.0% in April, according to a European Central Bank survey of 19,000 adults in 11 eurozone countries. The decline suggests softer price pressures and may reassure ECB policymakers because consumer inflation expectations can influence wage demands and spending behavior. The survey, conducted from May 7 to June 1, also fits with broader market moves tied to lower oil prices, which can reduce headline inflation and shape expectations for ECB policy, bond yields and the euro.